Apple’s leather bands (and all leather accessories) have faltered since the Series 6 era with the move to painted leather. Even further, they’re essentially landfill fodder; too thin to last, poor quality paint, etc. Apple ceasing their own leather production is a good thing.
Hermès hand produces all of their leather products at considerably lower volume than the mass production of Apple. They also make products that last, and offer repairs unlike Apple. Hermès has the best leather and leather artisans. It’s kinda their thing.
Reality isn’t black and white; leather isn’t going away and has benefits that no other material can match, might as well source the best option if it suits your needs. The impact of leather production from Hermès is considerably smaller and less wasteful than Apple, the products actually last longer than a year, and the life of them can be extended with available repairs.